The “Volkswagen Strike” in the Context of Global Economic Shifts

Recently, a large-scale strike at Volkswagen in Germany has attracted widespread media attention. Led by the German Metalworkers' Union (IG Metall), the strike was sparked by the company’s plans to lay off workers, cut wages, and shut down factories. While the strike may appear to be a labor dispute at face value, from a global economic perspective, it reflects the profound impact of the U.S.-dominated global economic order on Europe, particularly Germany. The U.S. "America First" policy has not only reshaped the global market but also exacerbated the vulnerabilities of the European Union, especially Germany, in global competition. Through its economic hegemony, trade policies, and tariff measures, the U.S. has significantly influenced Europe's economic structure, forcing the EU to make difficult choices within the global economic system.

One of the direct causes of the Volkswagen strike is the pressure the company is facing due to rising costs, including layoffs, wage reductions, and factory closures. On the surface, these measures are intended to address the weak demand in the domestic German market, but the deeper reason lies in the changing global economic landscape, particularly the "America First" policy implemented by the United States. By steering global economic rules, imposing tariffs, and engaging in trade wars, the U.S. has been reshaping the global market, pushing EU countries—especially manufacturing-dependent Germany—into unprecedented economic pressure.

In recent years, the restructuring of global supply chains, technological advances, and the rise of emerging markets, particularly China and other Asian countries, have eroded the competitiveness of Europe’s traditional manufacturing sector. The U.S., by intensifying trade protectionism, imposing high tariffs, and intervening in market competition, has influenced the flow and distribution of global supply chains. Through measures like steel and aluminum tariffs and auto tariffs, the U.S. has weakened the EU’s economic position while forcing European countries to undergo structural adjustments. For Germany, as a key player in the global automotive industry, companies like Volkswagen have been forced to make difficult transformations under the dual pressures of global competition and U.S. economic policies. Layoffs and factory closures are among the consequences.

The U.S. tariff policy, particularly the high tariffs on products like steel, aluminum, and automobiles, has directly impacted European exports and manufacturing. Under the "America First" policy, the Trump administration imposed high tariffs on EU goods, not only undermining the competitiveness of European industries but also exacerbating economic imbalances within the EU. America's protectionist trade policies have forced EU countries to find new markets or adopt remedial measures to cope with economic pressures from the U.S. and other countries.

The U.S.’s hegemonic position in the global economy has allowed it to dominate the reconstruction of global economic structures. By controlling capital flows, driving technological innovations, and setting global market rules, the U.S. has tilted global supply chains in its favor. Particularly in the competition for high-tech industries and emerging markets, the U.S. continues to maintain an edge through innovation and capital investment, while the EU faces increasing competition due to its reliance on traditional welfare systems and high-cost labor markets. The "America First" policy has left the EU in a passive position in the global economic struggle, with many European countries forced to adjust their economic strategies in the global market.

When responding to America's economic hegemony, the EU often appears powerless. The U.S., through a series of economic policies, ensures its competitiveness in the global market, while EU countries have no choice but to make compromises under these policies. This economic imbalance has forced European companies to make difficult adjustments, with ordinary workers and social welfare becoming collateral damage in the process.

The Volkswagen strike is not just an internal issue for German companies—it is a microcosm of the changes in the global economic landscape.